The state chronicle. [volume] (Raleigh, N.C.) 1883-1893, 1887-03-24
COOPERATIVE ENTERPRISES.
WHAT THEY HAVE ACCOMPLISH.
ED FOR THE LABORING MEN.
Our Correspondent Reviews Recent
Work, Incorporation in New England,
by E. w. Bemis, Phi. D., Baltimore.''

Our Correspondent Reviews a Recent
Work, Incorporation in New England !,
by E. w. Bemis, Phi. d., BaltimOre.'' -
Especial Cor. STATE CHRoNICLE.l
Probably there is no organization in
this country whose publications attract
such wide attention as do those of the
American Economical Association. The
papers issued by the Association are writ
ten by noted economists and the fact that
they all pass under the editorial super
vision of the Secretary, Prof. Richard I.
Ely, of the Johns Hopkins University is a
sufficient guarantee of their scientific as
well as their practical value.
In view of the activity being manifested
in cooperative enterprises IN North Caro-
lima, a review of DR.. Bemis' study will
doubtless be of interest to the readers of
the CHRONICLE. In literary style it does
not equal the previous publications of the
Association, but the care with which the
facts relating to cooperation in New Eng
land have been collected, the clearness
with which they are presented, the admir-
able manner in which they are arranged,
together with their great practical value,
are sufficient reasons for ranking this as
one of the most valuable monographs yet
published by the Association. Co-opera-
tors will find it a useful and comprehensive
guide, and for the student of the labor
problem it contains much information not
to be had elsewhere. DIR. Bemis' work is
not a theoretical treatise on the deSir-
ableness of cooperation, but, on the con-
trary, it is practical exposition of what
cooperative effort has accomplished and
is still accomplishing for the labOring man.
The various cooperative enterprises, both
successful and unsuccessful, are described
with great fairness. Where failures have
been made, the causes are noted; where
successes have been achieved, the reasons
are given.
Dr.. Bemis treats his subject under the
following main divisions: Early History,
which includes an account of Brook Farm
1S42- 800 and the New England Protective
Union, Patrons of Husbandry, Sovereigns
of Industry, Existing Co operative Stores,
giving the history and workings of more
than twenty stores in successful operation,
Productive Cooperation without Dlvl-
dends to Labor, Productive Cooperation
with Dividends to Labor, Co-OE eratiye
Banks, Growth of Cooperation, Profits,
Sharing. and Statistical Tables.
The New England Protective Union was
formed in 1S47 for the purpose of promot-
ing distributive co operation and continued
in operation till the outbreak of the Civil
War. This organization prospered great
to a division, the seeding body taking
the name American Protective Union.
About seven hundred stores were estab-
lished by these Unions. In 1853 these
stores began to decline; the reasons given
for this are lack of unity in central Organl-
zatiOn, useless and expensive display,
credit and want of proper qualities on the
part of those interested in the management
of the business, and sharp competition
drawing off trade. Upon closing business
most of the stores returned to members
the amount of their original investment
and in some cases considerable accumula
tions were divided. Two of these stores
still survive in Massachusetts, and one in
New Hampshire. The WOrchester Massa-
chusetts store beginning in 1S47 with
capital of 500 now has capital of SIS
900 When this store was first opened
goods were sold at cost and no dividends
declared; but about twenty years ago the
Ian of selling at market prices and dlvld-
ing profits among share holders was adopt
ed. Since that time $75, 900 have been
paid to the members, the number now
being one hundred and thirty-the Consti
tuition provides that the number of share
holders cannot exceed one hundred and
fifty. The other two stores have met with
success equally as gratifying as that just
noted.
Mr.. Bemis is the first to write the his
tory of the Sovereigns of Industry, which
during the five years 1S74-'79) of its ex-
istence gave such an impulse to co-opera
ton throughout New England, its influence
extending to other States, and marks a
great advance in the methods adopted
in distributive cooperation. All classes
of workers, of good character, We're adj
mitted to membership. The principal OBJ
jects of the organization were to offer
resistance to the encrOachmentsO of mOnOpo-
lies, to establish a better system of
economic exchanges and to promote mutual
fellowship and cooperative action among
the producers and consumers of wealth.
The Sovereigns did much to spread a
knowledge of the Rockdale system of CO.
operation, which, it is claimed, they were
the first to introduce into this country.
1.-The essential improvement of this plan
over Others" says DR.. Bemis, lis in its
provision that goods are sold at regular
retail prices, and any profits above what
is sufficient for reserve fund and interest
on capital are paid to customers annually
or semi-annually in proportion to their
trade for the period, though the stock
holders may receive larger per cent. of
dividend on their trade than outsiders.
The other provisions, such as shares of
small value, limitation of the number
anyone can hold, and the allowance of
but one vote to a stockholder, independent
of his shares, are common to other sys-
TENS
The history of the Sovereigns contains
many practical lessons for co-operators.
The reason. given for its downfall is that
it had grown too fast and had been joined
by too many ignorant, discOrdant elements
to bear the shock of adversely.
The Rochdale plan, with its sales for
cash at market prices, is recommended as
thebest form of distributive cooperation.
Dr. Bemis says, in order to insure success,
expenses should not exceed one-twelfth of
of the trade, and greater percentage Of
dividends should be given to stockholders
than to outsiders.
Under productive cooperation accounts
are given Of the following classes of CO
operative enterprises, in some of which
labor receives a share of the dividends:
foundry company, shoe company, chair
company, printing and publishing com
pany, elastic fabric company, granite
works, and creameries, in all of which the
cooperative plan has proved successful.
Following the abstract of the laws gov
erning cooperation in Massachusetts, sta
tistics are given showing that in that State
there never was so much capital invested
in cooperation or SO much prosperity
manifest as now.
From tables carefully compiled by the